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Daniele Corporation uses an activity-based costing system with the following three activity cost pools:
Activity Cost Pool
Total Activity
Fabrication
50,000 machine-hours
Order processing
500 orders
Other
not applicable
The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs:
Cost Data
Wages and salaries
$280,000
Depreciation
$200,000
Occupancy
$140,000
Total
$620,000
The distribution of resource consumption across activity cost pools is given below:
Activity Cost Pools
Order Processing
60%
30%
10%
100%
20%
35%
45%
50%
40%
The activity rate for the Fabrication activity cost pool is closest to _______ per machine hour.
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